I'm trying to find out the formula for calculating the IRR in relation to property
2007-01-15 01:56:21 · 3 answers · asked by Leesa T 1 in Business & Finance ➔ Investing
http://www.maths.tcd.ie/~mc/Downloads/Quants-Paper-Summer-2006-FormulaePage.pdf
2007-01-15 02:46:32 · answer #1 · answered by Anonymous · 0⤊ 1⤋
Investement=Annuity(PVIFA)irr,Years+Termianl value(PVIF)rate of return,Years,
From this calculate PVIFA by rearranging the equation and interpolate on the compound interst table to get the IRR against which the PVIFA occurs. PVIFA is Present Value Interest Factor of an Annuity. PVIF is Present Value Interest Factor.
Everything is known except (PVIFA)irr, years.
2007-01-15 04:12:25 · answer #2 · answered by Mathew C 5 · 0⤊ 0⤋
ROI is an accounting term and is usually a one period return. You calculated it bu dividing this periods return on the value invested. IRR -- or Internal Rate of Return is the rate where if you discount all of the future cash flows, the present value of the flows is equal to the cost.
2016-03-28 22:37:58 · answer #3 · answered by Anonymous · 0⤊ 0⤋